FX turnover hits $3.39bn on derivative surge

Trading activity in the Nigerian foreign exchange market experienced a significant surge during the business week ending September 11, 2026, driven by strong growth in both spot transactions and foreign exchange derivatives.

Data released by the FMDQ Securities Exchange showed a substantial rebound in overall liquidity, offering a positive signal for market participants and foreign portfolio investors monitoring transactional volume stability across the domestic market.

According to weekly market figures from the FMDQ, total foreign exchange turnover across the FX Spot and Derivatives segments expanded by 40.45 per cent week-on-week, recovering dynamically from lower volumes recorded in the prior trading frame.

The dramatic expansion in trading activity reflects increased participation among authorised dealers, commercial banking institutions, and corporate clients, signalling renewed momentum in currency trading.

“In the FX Spot and Derivatives markets, the total turnover for the week ended September 11, 2026, was $3,391.64 million, representing an increase of 40.45% ($976.79 million) from the $2,414.85 million reported for the week ended September 4, 2026,” the exchange noted in its weekly report.

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A closer examination of the underlying asset classes reveals that the growth in overall market liquidity was jointly propelled by double-digit gains in spot trading alongside a massive surge in derivative contracts.

The FX Spot market segment, which accounts for the vast majority of weekly currency dealings, posted a total value of $2,963.65m compared to $2,344.20m in the previous week, marking an increase of 26.42 per cent.

Equally notable was the extraordinary performance within the FX Derivatives space, comprising FX Forwards, which surged by 505.79 per cent from $14.13m recorded in the week ended September 4 to $427.99m in the week ended September 11.

This sharp spike in forward activity underscores heightened hedging demand and long-term positioning by market operators seeking to manage foreign exchange exposure amid evolving economic conditions.

Financial analysts view the elevated turnover as a vital metric for evaluating market depth and operational efficiency across official trading channels as liquidity continues to show robustness.